How to Prepare for a Prop Trading Interview

“Trade your skills. Amplify your capital. Own your future.”

Walking into a proprietary trading (prop trading) interview isn’t like showing up for a regular finance job. The vibe is sharper, the pace is faster, and the people across the table probably live and breathe the markets. They’re not just looking for someone who can crunch numbers—they want to know if you have the mindset, the discipline, and the curiosity to thrive when capital is on the line.

If you’re gunning for that seat on a prop desk, preparation goes way beyond skimming CNBC headlines the night before. You’re stepping into an environment where risk, strategy, and psychology all collide. The right prep can mean the difference between getting hired or walking out with a “we’ll keep your resume on file.”

Know the Business Model Inside Out

Prop trading firms put their own money at risk—meaning every position you take directly affects their bottom line. That’s very different from managing client funds at a bank. In an interview, expect questions designed to see if you understand the stakes. They might drill into:

• Market Structure Knowledge: Can you explain how forex liquidity works at different times of day? Can you talk through what drives commodity spreads?
• Instruments & Asset Classes: From stocks to indices, options to cryptocurrencies, you should be able to discuss your preferred instruments and why they offer trading opportunities. For example, a trader who understands the volatility patterns of crude oil futures has an advantage in structuring trades around inventory data releases.
• Revenue vs. Risk: Firms care less about your one lucky hit, and more about your risk-adjusted returns. Be ready to walk them through a trade, including your entry logic, risk cap, and exit triggers.

Build a Real Market Perspective

Textbook answers won’t cut it. Interviewers want to see how you think—in real time. If you say you trade crypto, they might ask: “How would Bitcoin react if the Fed raised rates 50 bps tomorrow?”

This is where active market engagement pays off. Even if you’re not managing big money yet, you can still:

• Track multiple asset classes daily—forex, equities, commodities, options—to spot correlations.
• Keep a trading journal with market reactions to economic data. This shows pattern recognition.
• Back-test strategies, but also explain how you’d adjust them during high-volatility periods or low-liquidity sessions.

Brush Up on Your Math and Mental Agility

Many prop firms love to throw probability puzzles, brainteasers, or mental math tests right in the interview. Not to be mean—just to see how well you process under pressure.

Examples you might run into:

• Calculating a quick PnL change if a position moves against you by X basis points.
• Estimating option delta changes on the fly.
• Spotting statistical flaws in a backtest report.

It’s not about memorizing every options Greek, but showing you can think logically and adapt when a problem morphs mid-question.

Demonstrate Psychological Resilience

Trading isn’t just charts and clicks—it’s dealing with being wrong, a lot. Interviewers know that even the best strategies hit losing streaks. The question is: How do you handle it?

If you can share examples of adapting after drawdowns, sticking to risk limits even when tempted to “win it back,” or staying emotionally steady after big swings, you’ll stand out. This is especially true in today’s volatile market environment where geopolitical shocks, decentralized finance (DeFi) shifts, and liquidity crunches can flip trends instantly.

Show Awareness of Where the Industry is Going

Prop trading isn’t frozen in time—it’s evolving fast. You’ll score extra points if you weave in your view of:

• The DeFi Shift: On-chain data transparency, decentralized exchanges, and the liquidity challenges they face without centralized market makers.
• AI-Driven Trading: Machine learning models scanning global order flow to spot opportunities before humans can.
• Smart Contracts & Automated Execution: Reduced middleman risk and faster order settlement.
• Global Asset Integration: More firms running multi-asset books that trade forex, crypto, commodities, and equities based on cross-market signals.

Showing you understand where the industry is headed signals you’re not just here for a paycheck—you’re here to grow with the markets.

Strategy, But Keep It Real

If they give you a mock trading scenario, don’t overcomplicate it to sound clever. Pick an instrument you know, outline the setup (technical or fundamental), define your risk, and explain the rationale.

For instance: “I’d take a long EUR/USD position post-ECB press conference if they maintain dovish guidance while U.S. CPI comes in softer. Entry around 1.0830, risking 30 pips, targeting 60 pips into the U.S. close. The logic: easing rate pressure plus a possible intraday breakout from resistance.”

Clear, confident, no jargon overdose—that’s how you make an interviewer lean in.

The Big Picture and Your Pitch

Prop trading can be one of the most merit-based corners of finance. Your PnL speaks louder than your degree, and your curiosity determines how far you can scale. With the explosion of new markets—from crypto options to DeFi lending products—and the growing role of AI-assisted trading, the next decade looks like a playground for those with both skill and discipline.

When you’re in that interview chair, you’re not just saying “I want this job.” You’re saying: “Give me the tools and the capital, and I’ll find the trades that others miss.”

Tagline for your mental prep: "Markets reward the prepared. Interviews too."

If you want, I can also help you create a one-page cheat sheet for quick pre-interview review—want me to draft that?